Thaw fluctuation is the difference between the content of the inventory books minus the actual physical existence of the merchandise or products that are kept within a business or establishment in question.
It is, in other words, the resulting subtraction between what you should have in existence minus what you really have.
The basic difference between a fluctuation and a decline is that the fluctuation is measured in monetary terms, that is, the loss is measured in real money value, while the decline only measures the physical loss of the physical merchandise itself.
Types of fluctuations
- Regular or cyclical: are those in which a period of growth is followed by descent.
- Irregular: they are characterized by non-periodic variations in the number of individuals in the population and are due to exceptional changes in environmental factors.
It is something unstable that very often changes or varies. For example: the dollar. as this is a great problem for the economic study.